engagement rules the new of How people work, and what they want from an employer, is changing. Major forces are reshaping the business environment as we know it, and rewriting the rules of employee engagement. In a complex and uncertain future, how will you keep your workforce switched on?
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engagementrules
the new
of
How people work, and what they want from an employer, is changing.
Major forces are reshaping the business environment as we know it,
and rewriting the rules of employee engagement. In a complex and
uncertain future, how will you keep your workforce switched on?
All changeThe rules of engagement have changed.
Two major forces are reshaping how your organization will attract,
motivate and retain the talent it needs to stay competitive.
First, as economies rebound from the global financial
crisis, millions of employees are now thinking about their
next career move. Improving job markets mean more
scope for talented employees to choose where they work.
Our research, in conjunction with the Centre for Economic
Business Research, predicts that by the end of 2018 almost
a quarter (23.4 per cent) of people worldwide will have
changed jobs. That’s some 192 million workers due to
hand in their notice over the next four years. (You can find
out more about the coming talent exodus in our Taking
Flight whitepaper.)
At the same time, the world is undergoing unprecedented
change. Our ground-breaking Leadership 2030 research
highlights six powerful ‘megatrends’ that are transforming
societies and the global business environment as we know
it (see panel, The future, trending near you).
Megatrends are lasting, deep-seated developments
with far-reaching effects on societies, economies and
organizations. The megatrends our research has identified
are:
1. Globalization 2.0
2. The environmental crisis
3. Demographic change
4. Individualism
5. Digitization
6. Technological convergence
The megatrends are fundamentally changing how we
work, what we care about in the workplace and what
we need from our employers. To succeed, businesses
must rethink how they engage and enable their people
and earn the loyalty of their employees. This is a critical
time to reshape your engagement strategy and develop
an innovative new talent management approach that
responds to the changes happening around us.
Keith Astill
Divisional Director – Corporate HR,
Nationwide
As the world
goes through
change, we
need to get
closer to our
people than
ever before.
“
”
For more on the megatrends, please visit:
http://www.haygroup.com/leadership2030
The future: trending near you
Our Leadership 2030 research highlights six global megatrends that are fundamentally
changing relationships between businesses, their customers and employees:
Technological convergence
Powerful shifts in technology are transforming
everyday life and creating new product markets.
6
Digitization
Work and the workplace are going remote, and the boundaries between professional and personal life are blurring, as people are increasingly operating online.
5
Individualism
Growing freedom of choice is eroding loyalty and transforming workplace motivation.
4
Demographic change
Aging populations are reshaping the global
workforce and exacerbating the war for talent.
3
Environmental crisis
The environment is becoming more and more important to people, as climate change gathers pace and natural resources grow scarce.
2
Globalization 2.0
Economic power is shifting from West to East, giving rise to a new global middle class.
Business success has always depended on an engaged workforce.
Companies with engaged employees achieve better business results. Our
research among millions of employees worldwide shows that firms scoring
highest for engagement achieve 2.5 times the revenue growth of those that
rate lowest – it’s a prize worth fighting for.
As the talent exodus looms, and the megatrends gather force, sustaining
an engaged workforce will be critical - while the role of the engagement
professional will be more complex, demanding and challenging than
ever before.
The good news is engagement professionals recognise the opportunity to
have a greater impact. However, our survey of 300 heads of engagement at
Fortune 500 and FTSE 250 companies suggests that many are yet to act:
• Over four in five heads of engagement agree that their company needs
to find new ways to engage its workforce in light of the changing
environment.
• Yet just one third feel their organization is adapting to the megatrends.
• And only a quarter have personally started to drive change.
The megatrends
Adapting to the megatrends means understanding them in detail. What
does each one entail? What will it mean for workforce motivation? What
can you do now to prepare for its impact, and make your engagement
strategy fit for the future?
Tom Plug
Lead Engagement Expert, KPN
Highly engaged employees are crucial for the execution of our strategy, for creativity and innovation. I believe that our future success depends largely on them.
“
”
Gary Short
Senior Consultant, Talent Management,
Kimberly-Clark
Fresh approaches to employee engagement are critical to sustain high organizational performance. It’s a challenging task. But failure is not an option, because the ability to attract and retain talent will either be a competitive advantage or a fatal flaw.
Think global, engage local: Tesco, Kimberly-Clark and localization
Multinational organizations Tesco and Kimberly-Clark understand the need to adapt their engagement activities to local needs.
“We look for a balance,” says Michael Webley, Head of Global People Insight at Tesco. “Group needs to measure engagement globally, and set strategy in line with our commercial objectives. But on-the-ground action has to work for local cultures and contexts.”
Gary Short, Senior Consultant, Talent Management at Kimberly-Clark agrees. “We engage globally and empower locally so organizational units can react in the most effective way based on their unique challenges and opportunities.”
Tesco has ‘engagement champions’ in each of its markets. “It’s their job to translate what our approach means for their country, and implement suitable action plans,” Michael explains.
An example of this in action at Tesco is in identifying their people priorities. Group agrees the overall strategy and thrust, then local teams tailor the content and delivery of how they achieve that goal to their country’s needs and expectations. “Our People Plan must future proof Tesco to cope with the new challenges and trends,” says Michael, “But how it is delivered on the ground needs to look and feel local to have the desired impact.”
“With the collection of employee feedback becoming ever easier, we need to have clear governance on employee survey activities in each of our markets” adds Gary. “‘Survey vogue’ can become ‘survey rogue’ very quickly. Poorly thought out survey activities can undermine employee confidence and create engagement nightmares that are challenging to undo.”
globalization 2.0
What will it mean for engagement?Under globalization 2.0 the talent market has gone
global, with established corporations now having to
battle with new competitors for valuable skills.
This will force organizations to think creatively about
how to attract, engage and retain talent across the
world. Engagement strategies and plans must have the
flexibility for local teams to adapt them to local cultures,
priorities and talent markets.
And as cross-border cooperation becomes essential,
organizations must enable meaningful collaboration.
This means establishing cultures, platforms and
processes to make cooperating easy, and equipping
people with the appropriate skills. Without these
enabling factors, employees will quickly grow frustrated
if they need to work with colleagues in other countries.
lost in translationWhat is the globalization 2.0 megatrend?Economic power is shifting from ‘old’ Western economies to the emerging markets of Latin America,
Eastern Europe and in particular, Asia.
Rapid growth in these parts of the world is creating a new global middle class, with impressive
spending power.
This is leading to intense competition for new markets, each with its own unique local flavor.
To exploit these opportunities, multinational businesses must increase local participation in strategic
and operational decisions. This will call for closer collaboration between the different corporate
functions and regional divisions.
What can I do about it?
Widen your perspective
Make sure you have a truly global team in place responsible for setting your
engagement strategy and designing your core employee survey.
1
Strike the right balance
Inject a measure of local autonomy into engagement, but not at the expense of
fragmenting engagement activity.
This may mean allowing some local adaptation of your global survey. Or giving managers
the freedom to interpret survey results through a local lens, and adjust action plans to
their needs. Also consider building a network of regional co-ordinators and engagement
champions to help with the localization process.
But don’t jump blindly into localization, just because it’s good practice. Yes, you should
benefit from it, but remember that your engagement strategy must be aligned with your
company strategy. The right balance between global and local engagement activity will
depend on your organization’s overall objectives.
2
Drive alignment
Scan and understand the different cultures that may exist within your organization.
Evaluate the similarities and differences, and assess whether people’s behaviors need to
be better aligned to achieve your business strategy.
3
Foster collaboration
Equip people to collaborate globally: the emotional attributes, cultural awareness and
linguistic skills. Move talent around the business, and give staff the opportunity to work
abroad. This will enable them to cross-fertilize ideas, foster world-class performance and
gain a wider perspective.
4
Share success
Create platforms for engagement managers to share best practice globally – online and
offline. For example Aegon, an international provider of insurance, pensions and asset
management created an innovative ‘engagement map of the world’ for managers to
draw on successes from within the company.
Make use of your intranet, start online discussion forums or consider introducing a
corporate social network. International retailer Tesco uses Yammer to share information
globally between engagement managers.
“For us, Yammer is a valuable sharing tool, but it’s more than that,” Michael Webley,
Head of Global People Insight at Tesco told us. “It’s a great way to boost emotional
engagement. It reminds us that there’s a Tesco world out there beyond our local market
or store. And when people are more connected, they’re more engaged.”
But don’t forget to hold face-to-face knowledge-sharing sessions from time to time. A
leading UK public sector organization combines an intranet platform with processes for
engagement ‘champions’ to come together and share ideas.
What does it mean for engagement?Digital technology is reversing the balance of power between employers and employees in a number of ways:
It creates a climate of transparency, putting reputations at risk. Employees and customers can instantly share information about companies and colleagues – good or bad – with the world at large.
Social media offers a platform for talented individuals to promote their abilities and achievements, making them more accessible to competitors.
Online resources make it easier for employees to compare their compensation, career opportunities and work environments with the competition.
In this context, sustaining engagement through a culture of trust and ethical standards is essential. It will help discourage employees from exposing sensitive information, and from moving to competitor firms.
Digital technology can boost productivity and engagement. It enables organizations to understand far more about employees’ attitudes, needs and preferences, and to tailor their practices to boost engagement.
Suncorp, a leading financial services group in Australia and New Zealand, has had great success with its W@H (‘Work at Home’) initiative which has allowed them
to attract high performing individuals who previously found securing work difficult due to factors such as a disability or their carer role. These individuals work mostly from home, and live within a 30 minute commute of one of the company’s W@H Hubs, which are used for team meetings and training. Suncorp’s employee surveys show that W@H staff are more engaged and less likely to leave than their workforce generally. And they perform better than similar business units where employees don’t generally work from home.
Using the Hubs as ‘connection points’ has helped Suncorp overcome one of the downsides of technology. Remote working must be balanced with the need for face-to-face communication.
What’s more, firms need to manage the implications of employees being ‘always-on’. What is the impact on work-life balance and engagement over the long term? How will it affect the exchange between contribution and reward – and more importantly, employees’ perception of that exchange?
Rapid changes in technology can also quickly leave people’s skills out of date. Continuous learning will be essential to sustain engagement and productivity.
remote possibilities
Having a flexible approach to when, where and how work is done is… part of our commitment to supporting people to be the best they can be – inside and outside work.
“
”Amanda Revis
Group Executive, Suncorp Human Resources
What can I do about it?
Play to technology’s strengths
Technology is considered a basic right by many younger workers. Identify where it can
have a positive impact – for example, by connecting people, communicating with the
workforce, streamlining processes, or making essential tools and information available
anywhere, anytime.
Assess where social media can facilitate collaboration, knowledge-sharing and
recognition. Identify ‘pilot groups’ to trial new technology platforms.
“Digitization is an opportunity as well as a challenge,” says Michael Webley, Head of
Global People Insight at Tesco. “It’s a way for colleagues to connect, share and learn from
each other. And it’s a way to enable people to do their job, and to keep them updated on
what’s happening at the company; the products and services we have.”
“That’s what keeps people engaged, and when we know more about the company we’re
more likely to become brand advocates.”
1
Protect work-life balance
Educate managers about the pitfalls of an always-on culture, and make sure they keep
tabs on their teams’ working habits. Encourage them to lead by example, by building
responsibility for work-life balance into their performance metrics. Assign overall
accountability for this issue at leadership level.
2
Maintain face time
Make sure managers bring their teams together in person on a regular basis.
Technology mustn’t create electronic silos in the workplace. As people, we need to
maintain relationships and build trust through face-to-face interaction. Managers will
play a critical role in fostering relationships, keeping morale high and fusing people’s
knowledge through social events.
3
Analyse your reward
Use benchmarking tools to make sure your compensation is competitive. In the digital
era, staff can easily find ways to compare their package with the market. Analyse your
survey results to understand what employees think about their reward and want from
their package.
Then take a holistic approach. Look beyond pay and the usual benefits to the intangible
rewards you offer, such as career progression, learning and development, team spirit and
flexible working. Employees tend to focus on the ‘hard’ aspects of reward, so make sure
you communicate the whole picture.
4
Reward impact
Recognize outcomes, not just ‘inputs’. Given the flexibility of the digital era, and the
drive for work-life balance in an individualized world, people might not always work
conventional hours. Performance measures need to focus on the achievements they
make, not how and when they work.
5
Manage expectations
Some employees will expect the best possible IT to be available to them at work –
particularly in technology firms. Make clear the art of the possible, and don’t overpromise.